Despite two bank holidays in May, the UK used car market remained stable with supply and demand balanced, according to BCA. The average vehicle value saw a minor reduction of £132 to £7,376 compared to April. Since January, the average value has decreased by just over £200 from £7,597, indicating underlying stability throughout the year.
Monthly sold volumes reached the second highest point of the year, and performance against price guide expectations increased by 1.1 percentage points from April. Sale conversion rates remained robust, bolstered by a significantly higher number of active buyers compared to the same period last year. More than 5,000 different buyers purchased each week, prompting the introduction of new sales events and an expanded weekend sales itinerary.
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BCA’s buyer feedback indicates healthy used retail activity, with strong competition for well-presented vehicles, partly due to the decline in new car registrations during the pandemic. The post-Easter period has seen strong performance in the used car market, with positive expectations extending into the summer holiday period.
Stuart Pearson, BCA COO, said: “After a little pricing volatility at the start of the month, the mood of both our buyers and sellers has been generally positive, mainly driven by a very stable market with minimal overall movement.”
“We’ve seen volume lift, but demand has more than matched it and clean, well-presented stock always attracts competitive bidding. While EVs continue to receive negative press, many have now found a price point that makes them very attractive, and we’re seeing good levels of demand for many models. Overall, pricing stability tends to radiate confidence, and we’ve seen the June market lift even further in the early days of the month.”
Pearson added, “Considering the flurry of often contradictory economic messages and the impending General Election, as well as being firmly in the traditionally quieter period of the year for used car sales, our buyer customers tell us that retail activity remains relatively buoyant. Every indication suggests that these trends will continue over the coming months, with many dealers eager to carry more used stock if they can source it.”
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